Daily Excelsior...Business

Crop diversification
is agri Mantra amongst
most states

NEW DELHI, Sept 28: A consensus has emerged on diversification of major crops like wheat and rice to oilseeds, maize and pulses during deliberations.....more

GDP growth falls
to 4.4 per cent in
April-June 2001

NEW DELHI, Sept 28: Confirming the slowdown in economy, the GDP growth in the first quarter of the current financial year has fallen to 4.4 per .......more

OPEC holds tight as
economic storm brews

VIENNA, Sept 28: OPEC producers said they would have to ride out a gathering economic downturn and accept lower prices for their petroleum exports. ......more

BHEL earns net
profit of Rs 312.6 crore

NEW DELHI, Sept 28:Despite a subdued industrial climate and decrease in the selling price of goods, engineering major Bharat Heavy Electricals Ltd .....more

SC relaxes deadline
for CNG conversion
to Oct 18

NEW DELHI, Sept 28: Supreme Court today relaxed till October 18 the September 30 deadline for conversion of 10,000-strong bus fleet of the capital to single fuel CNG mode. .....more

Salem to supply 11,000
tonnes steel for coinage

NEW DELHI, Sept 28: The Steel Authority of India Limited’s (SAIL’s) Salem Steel Plant (SSP) requires 11,000 metric tonnes of stainless steel this year for minting of coins....more

Aviation Ministry seeks
insurance comfort

NEW DELHI, Sept 28: Civil Aviation Ministry has written to the Finance Ministry to provide a letter of comfort for lessors of aircraft to Air India and....more

Growth rate falls to
4.4 pc in April-June 2001

NEW DELHI, Sept 28: Economic growth fell sharply to 4.4 per cent in the first quarter of this year as against 6.1 per cent during the same period last ....more

Crop diversification is agri Mantra amongst most states

NEW DELHI, Sept 28: A consensus has emerged on diversification of major crops like wheat and rice to oilseeds, maize and pulses during deliberations between Centre and state officials in the ongoing National Conference on Agriculture here.

While submitting state’s estimates for agricultural output in kharif and setting targets for the rabi season, the stress was on reducing the area under wheat and rice, yet maintaining production by increasing yields, officials said.

State-wise data submitted during the conference showed that emphasis was more on cotton, pulses and coarse cereals. Punjab’s estimates were an indicator of the trend.

The state has reduced its acreage in rice to 24.55 lakh hectares (la ha) in 2001-02 from 26.11 la ha in 2000-01 and the production has fallen marginally to 89.50 lakh tonnes (lt) from 91.54 lt.

Shift in the cropping pattern has benefitted cotton whose acreage in Punjab has increased to six la ha from 4.74 la ha and output has increased to 15 l bales from 12 l bales.

In the coming rabi season, the state intends to reduce area under wheat to 33 la ha from 34 la ha in the previous rabi season but increase output marginally to 155.65 lt from 155.51 lt.

A major gainer in the rabi season would be oilseeds whose acreage in the state is targeted to increase to 176 la ha from a mere 64 la ha and the output to rise accordingly to 2.29 lt.

Haryana was expecting a doubling of cotton output to 14 lakh bales from seven lakh bales while wheat acreage and production was targeted to stay put at around 23.5 lakh ha and 96 lt respectively.

Haryana’s rice production and area covered was also estimated not to show much changes at 26.5 lt from 9.05 la ha.

Uttar Pradesh was to focus on pulses like gram (11 lt from nine la ha), peas (five lt from 4.65 la ha) and lentil (six lt from 5.3 la ha). Its rice acreage had remained same at 58.5 la ha while output had increased to 120 from 115 lt.

Similarly, in wheat the state was aiming at only a marginal increase in area covered and yet enhance output to 300 lt from 250 lt.

Cotton was also a gainer in Madhya Pradesh where its output had increased to three lakh bales from 2.4 l bales as the area covered had risen to 6.2 la ha from five la ha.

In Gujarat, a drought year followed by normal rains ensured that there was a substantial increase in production of all the major crops.

Groundnut output had increased a near four times to 22 lakh tonnes from 6.3 lt, bajra doubled to 11 lt from 5.5 lt, cotton 38 l bales from 11.6 l bales, wheat 19 lt from 6.5 lt and mustard five lt from 2.3 lt.

For similar reasons, Rajasthan had also shown increase in output of most crops and primarily focused on coarse cereals, pulses and oilseeds.

It has had a bumper crop of bajra (27.2 lt from 44 la ha) maize (12.3 lt from 9.4 la ha), jowar (2.6 lt from six la ha), pulses (8.6 lt from 24.4 la ha) groundnut (3.1 lt from 2.7 la ha) and mustard (20.6 lt from 20.5 la ha).

But, estimates for rabi were based on the assumption that there would be normal rains in October as is the trend and the disappointment towards kharif end (August-September) in the rainfed regions of northern India would not be repeated.

Chhattisgarh had also been focussing to increase its non-rice cereal production like Uttar Pradesh and would be diverting the water for summer paddy to oilseeds and pulses.

In Andhra Pradesh, an anomaly had come to light with the state giving an estimate of 55 lakh tonne foodgrain production even as it has asked for a procurement for 88 lakh tonne.

Orissa had rainfall over 27 per cent above normal and 6.5 la ha were under water for two weeks bringing down the acreage by two la ha to 59 la ha.

Nevertheless, foodgrain output has increased to 65.28 lt from 46 lt. In cotton, the state has increased the area covered to 0.62 la ha from 0.38 la ha aiding a near 50 per cent rise in output to one l bales from 0.7 l bales.

Nationwide cotton output and acreage would have been much higher than what materialsed this kharif but for the attack of the bollworm pest.

Orissa had brought an additional 50,000 ha under irrigation by installing 5000 shallow tubewells at 50 per cent subsidy mostly in the Kalahandi, Bolangir and Koraput (KBK) region. The target was to install another 7000 tubewells by next year.

In Maharashtra, the trend of drought and erratic rainfall continued, nevertheless the area under cotton, pulses and tur had increased. (PTI)

OPEC holds tight as economic storm brews

VIENNA, Sept 28: OPEC producers said they would have to ride out a gathering economic downturn and accept lower prices for their petroleum exports.

Oil ministers yesterday ratified an agreement that leaves oil supply limits unchanged, delaying until another meeting in November any fresh effort to lift crude out of a price slump. Even traditional hawks among organisation of the petroleum exporting countries nations have been forced to revise lower their sights on what is an acceptable oil price in the face of an imminent global recession.

"Considering the economic situation, considering the global economy, a price maintained at 21 to 22 dollars for the basket, this opec could live with for some time," said Kuwaiti Oil Minister Adel Al-Subaih.

"I am comfortable with 22 dollars because the OPEC basket price is (valued now) about 20 and 22 dollars is better than 20 dollars for US," said Iranian Oil Minister Bijan Zanganeh.

Boxed in by political constraints in the wake of the September 11 attacks on the United States, ministers have watched helpless this week as oil collapsed out of their favoured price range. They agreed to keep production at 23.2 million barrels a day for ten member countries and left their official 22-28 dollars a barrel price target intact.

Producers will be hoping that oil markets, stung by the downturn that is sapping petroleum demand, have bottomed after a 20 per cent fall in just two weeks.

But they face a grim outlook as industry, business and consumers cut back on consumption of petroleum products like jet fuel, gasoline and diesel.

"In 2002, the oil demand outlook is the worst in 20 years —the first year of no demand growth since 1983," said Peter Nicol of Abn Amro Bank in a note to clients.

Ministers meet again on November 14 hoping for a clearer picture of what might be needed to revive their successful two-year strategy of keeping crude in a high-price band.

They have not ruled out taking earlier action if prices take another dive.

"OPEC is working to a US clock now, but it’s not just about political constraints, they have to work out what price they can defend in a recession," said Raad Alkadiri of Washington-based Petroleum Finance Corp.

"They also have to decide how much market share they want to defend."

Some oil traders have lost confidence in the cartel’s ability to prop up prices by managing its production, which accounts for about one half of world exports.

They will wait to see whether OPEC can tighten adherence with existing output curbs that include a million-barrel-a-day cut that came into effect just this month.

"The cuts we made at the beginning of september will need at least one month and a half to be reflected on a practical basis in the market," said Libyan OPEC Representative Ahmed Abdulkarim.

Having sliced production by a total 3.5 million BPD this year, the group has little room to manouevre in slicing output further without ceding markets to other suppliers.

"OPEC was already concerned about demand next year and non-OPEC growth," said Alkadiri. "It’s just that the problems have hit them more suddenly then expected."

Ministers are worried that, without a rebound in world demand, any further curbs could erode opec market share against competitor non-opec country producers, without helping prices.

OPEC is seeking assurances from non-member exporters, especially Mexico, that they will not precipitate a price crash with unwanted supplies in the face of recession. (REUTERS)

BHEL earns net profit of Rs 312.6 crore

NEW DELHI, Sept 28:Despite a subdued industrial climate and decrease in the selling price of goods, engineering major Bharat Heavy Electricals Ltd (BHEL) earned a net profit of Rs 312.6 crore and declared an equity dividend of 30 per cent for 2000-01.

BHEL registered a turnover of Rs 6348 crore mainly due to its diversified business portfolio, enhanced market share and value addition, company’s Chairman and Managing Director K G Ramachandran told its 37th annual general meeting here today.

He said the net profit of Rs 312.6 crore was a major achievement against a projected profit of Rs 296 crore at the close of the financial year.

The net worth and Net Asset Value (NAV) per share went up by 7.3 per cent over the previous year.While the net worth touched Rs 3602 crore NAV per share went up to Rs 147.2, indicating the intrinsic strength of the company.

Earnings per share stood at Rs 12.8, despite the impact of cash outflow for payment of arrears for four years due to wage revision and deferred revenue expenditure on account of a successful voluntary retirement scheme.

Mr Ramachandran said this performance is significant in the backdrop of delay of orders in its business areas and severe demand contraction in the industrial market affecting the entire engineering and capital goods industry during the year.

Notably, BHEL secured domestic and overseas orders worth Rs 5557 crore during the year. Inspite of operating under intense competitive pressure in depleted domestic and international markets, the company bagged over 92 per cent of the power plant and associate equipment orders and 63 per per cent of the industrial equipment orders finalised during the fiscal, he said.

In the first six months of the current fiscal, BHEL has won several orders including the contracts for Rihand Thermal Power Station Stage II and Ramagundam Stage III. With a record cumulative order book position of over Rs 12,500 crore, the company expectes to achieve healthy top and bottomline growth in the current year and beyond, he said.

In the overseas business, continued thrust on enhancing physical exports resulted in an export order booking of Rs 715 crore reflecting the continuation of momentum achieved in the last three years, Mr Ramachandran said.

Looking ahead, Mr Ramachandran said that with the changing business environment and market needs, the company has decided to give more thrust to identified high growth business areas like hydro business, transmission and distribution, after- market services, renovation and modernisation, urban mass transportation and port equipment.

In addition, BHEL’s IT business area has now been focused on IT-enabled services for the power sector,software services to the engineering industry and e-commerce. The company is strengthening its IT linkages within the organisation and is evaluating its approach towards emerging opportunities in IT including e-business, he said. (UNI)

SC relaxes deadline for CNG conversion to Oct 18

NEW DELHI, Sept 28: Supreme Court today relaxed till October 18 the September 30 deadline for conversion of 10,000-strong bus fleet of the capital to single fuel CNG mode.

While relaxing the deadline, a three-judge bench comprising Chief Justice A S Anand, Justice B N Kirpal and Justice V N Khare directed the Union and Delhi Government to take stringent measures to stop adulteration of diesel to check pollution.

"The Government should take appropriate measures to ensure that diesel is not adulterated by checking the quality of the fuel not only at petrol pumps but also in the vehicles," the bench said.

"Strict action shall be taken against those indulging in adulteration including cancellation of licence and permits," it said.

The court clarified that the CNG only norm will not be applicable to ambulances, diagnostic vehicles, special protection group vehicles and jail vans carrying the accused to the court from the jail.

The case will come for further hearing on October 18.

During the hearing the court came down heavily on the Union Government, Indraprastha Gas Limited - the sole supplier of CNG to capital and the Delhi Government for giving divergent views on the availability of the CNG and its implementation.

"Attempts are being outside as well as inside the court to confuse the issue. Focus is being shifted from clean environment to whether CNG is available and whether CNG is a clean fuel at all," the bench remarked.

"We are yet to see any of the vocal critics of the Supreme Court order on conversion of the bus fleet into CNG mode stressing on the clean air of the city," it said.

"And they say forgive them for they know not what they say," the judges said adding that from the time the court set the emission norms for the vehicles, the issue has gone totally astray.

The court, after hearing amicus curiae Harish Salve and counsel for Union Government A D N Rao, commented that it was not possible to believe that there was any shortage of CNG.

Referring to statements made by various quarters on the CNG issue, the bench said "the irresponsibility of certain statements is mind boggling. But whether they want to take political advantage of it or not, does not bother us." (PTI)

Salem to supply 11,000 tonnes steel for coinage

NEW DELHI, Sept 28: The Steel Authority of India Limited’s (SAIL’s) Salem Steel Plant (SSP) requires 11,000 metric tonnes of stainless steel this year for minting of coins.

According to an official release issued here today, it has bagged an order from the Government mint, against a global tender to supply 7000 tonnes of ferritic cold rolled stainless steel strips. The supply against this order has already began from June this year.

Ssp supplies both ferritic stainless steel coin blanks for minting to coins and ferritic stainless steel strips to the India Government mints for making blanks and then to coins. During the year 2000-01, SSP supplied 3,572 tonnes of coin blanks to the mints in Noida, Mumbai, Kolkata and Hyderabad. This comprised of 2,034 tonnes (419 million pieces) of rupee one blanks, 1,252 tonnes (330 million pieces) of 50 paise blanks and 286 tonnes (101 million pieces) of 25 paise blanks. SSP also supplied 193 tonnes of ferritic stainless steel strips to the mints in Mumbai, Kolkata and Hyderabad in the same year for making blanks.

SSP at present is processing an order of 3,454 tonnes of coin blanks comprising rupee one, 50 paise and 25 paise blanks. (UNI)

Aviation Ministry seeks insurance comfort

NEW DELHI, Sept 28: Civil Aviation Ministry has written to the Finance Ministry to provide a letter of comfort for lessors of aircraft to Air India and Indian Airlines for a third party war risk cover, after ai grounded two leased Airbus A310S and was likely to ground one more shortly.

While two aircraft, leased by Singapore Airlines (SIA), were grounded yesterday and today, one more belonging to US leasing firm Gecas was expected to be grounded soon, ministry sources said. Air India had three days ago grounded a A310 after the French lessor BNB Paribas sought a third party insurance cover.

Air India, the sources said, was facing a hike of about Rs 10 crore in its insurance premia which would have to be borne by the national flagship itself.

Following a presentation made by Air India officials to the Civil Aviation Ministry here yesterday, the ministry has written to the Finance Ministry seeking comfort for the companies leasing aircraft to Air India and Indian Airlines following a global hike in insurance premium for a third party cover of the hull war risk in the wake of September 11 terror strikes in the US.

The sources said a similar cover was provided to the national carriers during the Gulf war.

SIA, which had withdrawn from the Air India disinvestment process last month, in a letter to the airlines on Wednesday sought a full insurance cover in the wake of devastating attacks. (PTI)

Growth rate falls to 4.4 pc in April-June 2001

NEW DELHI, Sept 28: Economic growth fell sharply to 4.4 per cent in the first quarter of this year as against 6.1 per cent during the same period last year due to dismal performance by industry and services sectors overshadowing the turnaround in the farm sector.

The latest figures of the Central Statistical Organisation (CSO) released today said growth in the mining and quarrying sectors declined to zero per cent during the period as against five per cent growth last year.

Similarly, growth in the construction sector dipped four times at a mere 2.5 per cent in the first quarter compared to a healthy growth of 8.4 per cent in 2000-01, while growth in manufacturing also declined to 2.3 per cent in the current fiscal against seven per cent last fiscal.

The electricity sector also witnessed a decline in its growth rate to 3.3 per cent compared to 5.7 per cent during April-June 2000-01.

The decline in growth of these sectors overshadowed the remarkable recovery of the agricultural sector which grew at 2.3 per cent as against a mere 0.6 per cent last year during the period.

At 1993-94 prices, GDP at factor cost was estimated at Rs 2,99,941 crore against Rs 2,87,168 crore in the first quarter last year.

Among the services sector, key indicators of railways namely the net tonne kilometres and passenger kilometres have shown growth rates of zero per cent and 12.6 per cent respectively during the first quarter of 2001-02 as against growth rates of 7.0 and 5.9 per cent last year respectively.

Key indicators of the construction sector namely cement and finished steel registered growth rates of 2.4 per cent and negative 0.2 per cent respectively during the first three months of the current fiscal compared to growth rates of 3.6 per cent and 12.2 per cent during 2000-01 respectively.

The trade, hotel, transport and communication sector grew at 5.2 per cent during the first quarter which was lower compared to a nearly 10 per cent growth in the same period the previous year.

Financing, real estate and bus services as also community, social and personal services both saw a marginal increase to 9.9 and 6.2 per cent during the first quarter compared to 9.5 and 6 per cent during April-June 2000-01.

GDP at factor cost at current prices in the first quarter of 2001-02 also declined to 8.7 per cent from 11.8 per cent during April-June last year.

At current prices, however, mining and quarrying was the only sector to witness a turnaround from a negative growth of 1.3 per cent to 5.9 per cent growth in the first quarter this year.

The next quarterly estimate of the GDP for July-September 2001-02 would be released in December 2001. (PTI)